This is an office consolidation and not an
official version of this Act or Regulation. While care has been taken in assembling this
document, it is not warranted to be true and accurate. Official copies of all Provincial
Acts and Regulations are available from Island
Information Service.

(h) "Minister"
means the Provincial Treasurer of the province and includes anyone designated by the
Minister to act on his behalf;

municipality

(i) "municipality"
means an area incorporated as a city, town or community and includes an area of the
province defined geographically by the Lieutenant Governor in Council and designated by
the Lieutenant Governor in Council as a municipality for the purposes of this Act;

3. (1) All real
property in the province that has been assessed pursuant to the Real Property
Assessment Act is liable to taxation by the Minister, subject to the following
exemptions from taxation:

(a) every church and place of
worship and the land used in connection therewith, and every church yard and every church
hall used for religious or congregational purposes exclusively save only for occasions
specially authorized by church authorities and for which no net revenue in excess of $500
per year is received;

(b) real property owned by any person and used as a non-profit
cemetery or burying ground, but where the cemetery or burying ground is not immediately
required for the interment of the dead, it shall not be exempt from taxation hereunder
until such time as the real property has been actually and required in good faith, and at
least in part used, for the interment of the dead;

(c) real property designated and used by a municipality or the
province as a public square or a public park, except such part thereof which is occupied
by a tenant, lessee or licensee;

(d) real property owned by the Crown, including Crown
corporations and agencies, except that

(i) real property
that is held under lease from the Crown is liable to both provincial and municipal real
property taxes.

(ii) real property located within the boundaries of a
municipality is, subject to subsection (1.1), liable to municipal real property tax;

(d.2) aircraft runways owned and operated by an airport authority
recognized by the Minister,

(e) buildings, or
structures, being part of a purification system, including machinery installations and
equipment, located either above ground or below ground, affixed to such buildings or
structures and contributing to the utility of the purification system, and this exemption
does not include the land on which such buildings or structures are situated;

(f) real property owned by the University of Prince Edward
Island, and real property owned by Holland College, that is necessary for or is incidental
to the purposes of learning and education at the University of Prince Edward Island or
Holland College;

(f.1) real
property owned by the regional authorities that is necessary for or
incidental to the purpose of care and treatment of patients, specifically
the Queen Elizabeth Hospital, Western Hospital, Community Hospital, Stewart
Memorial Hospital, Kings County Memorial Hospital, Souris Hospital, Prince
County Hospital and the East Prince Health Facility; 2000,c.21.s.1.

(g) the exemption from taxation referred to in clause (f) does
not apply to

(i) real property
owned by the University of Prince Edward Island, or Holland College, that is not in use
for educational purposes, including farm property, or

(ii) real property owned by the University of Prince Edward
Island, or Holland College, that is leased, rented or in any way made available to any
person by the University of Prince Edward Island, or Holland College, for any
non-educational objects, and for any length of time, when such real property is primarily
in use by the University of Prince Edward Island or Holland College, for such profit or
gain;

(h) real property
owned or used by the province or a municipality for the purpose of a public institution of
learning and education;

(i) real property owned or used by the Maritime Christian College
for the purpose of a public institution of religious learning and religious education;

(j) real property owned by Her Majesty in right of Canada except
that such real property held under lease is liable to provincial and municipal real
property taxes;

(l) real property designated as a wildlife management area under
the Fish and Game Protection Act R.S.P.E.I. 1988, Cap. F- 12.

Hospitals, exemption

(1.1)
Real property that is owned by the Crown and that is necessary for or
incidental to the purpose of care and treatment of patients at the Queen
Elizabeth Hospital, Western Hospital, Community Hospital, Stewart Memorial
Hospital, Kings County Memorial Hospital, Souris Hospital and the Prince
County Hospital is not liable to provincial and municipal real property
taxes.

Buildings upon natural area or
wildlife management area to be separately assessed

(2) The exemption of
real property designated as a natural area or a wildlife management area
pursuant to clause (1)(k) or (l) does not extend to any portion of the real
property upon which a building or structure has been erected, and for the
purposes of assessment and taxation each such portion shall be

(a) deemed to be one acre in
area; and

(b) treated
as real property subject to a separate assessment.

Subdivision of
natural area or wildlife management area

(3) Where final approval is
given by the Minister responsible for the Planning Act R.S.P.E.I.
1988, Cap. P-8 in respect of the subdivision of real property designated as
a natural area or a wildlife management area, the portion of the designated
area that is subdivided from the designated area for development purposes
ceases to be exempt from taxation pursuant to clause (1)(k) or (l). R.S.P.E.I. 1974, Cap.
R-6, s.3; 1980, c.45, s.1; 1988, c.57, s.1; 1990, c.51, s.1; 1994, c.53,
s.1; 1997(2nd),c.70,s.1.; 2000,c.21,s.1 - Dec. 20, 2000; 2005,c.17s.1
2007,c.13,s.2.

PROVINCIAL REAL PROPERTY TAX

Rate of tax

4. (1) The
Minister shall levy a rate of tax on all taxable real property in the province at the
following rates:

(a) on commercial realty, $1.50
per $100 of assessment;

(b) on non-commercial realty, $1.50 per $100 of assessment.

Calculation of tax

(2) The tax shall be calculated on the market value of the
real property except that

(a)
in the case of a farm property, it shall be calculated on the farm
assessment value of the property;

(b) in
the case of a farm use property, it shall be calculated on the farm use
assessment value of the property; and

(c) in the case
of an owner-occupied residential property, it shall be calculated on the
owner-occupied residential property assessment value of the property.

5.Subject
to the regulations, a person in whose name non-commercial realty is assessed
pursuant to the Real Property Assessment Act who is a resident person
or a resident corporation, except a person or corporation holding in trust
such realty owned by a non-resident person or non-resident corporation, is
eligible to receive a tax credit at the rate of $0.50 per $100.00 of
assessment. 1993,c.18,s.1;
1995,c.36,s.1; 2008.c.2.s.1

Tax credit for
owner occupied residential property

5.1 (1) For the calendar
year beginning January 1, 2003 and for every calendar year thereafter, a
person in whose name residential property is assessed pursuant to the Real
Property Assessment Act on January 1 of that calendar year is eligible to
receive a tax credit, in an amount determined in accordance with the
regulations, in respect of the residential property if the person

(a) occupied
the residential property for all or part of the calendar year; and

(b) did not
lease or rent any part of the residential property during all or part of the
calendar year. 2003,c.17.s.1.

Buildings with
multiple individual unit accommodations

(2) For greater
certainty, where a residential property in respect of which a person is
assessed under the Real Property Assessment Act comprises more than one
dwelling accommodation unit, the eligibility of the person for a tax credit
under this section and the amount of the credit shall be determined only in
respect of the dwelling accommodation unit that was occupied on a permanent or
seasonal basis by the person during the calendar year. 2003,c.17.s.1;
2008,c.28,s.1.

"residential
property" defined

(3) Repealed by
2007,c.13,s.4.

Tax credit, land
subject to crop rotation or sloped land planting restrictions

5.2 (1) For the
calendar year beginning January 1, 2004 and for every calendar year
thereafter, a person in whose name real property is assessed for a farm
assessment or a farm use assessment pursuant to the Real Property
Assessment Act is eligible to receive a tax credit, in an amount
determined in accordance with the regulations, in respect of the real property
if

(a) the real property
comprises an area of land that is in excess of one hectare;

(b) no regulated crop was
planted on the real property during the calendar year in accordance with
section 8 of the Agricultural Crop Rotation Act; and

(c) the person meets or
complies with any other criteria or requirements established by the
regulations.
2004.c.44.s.2.

5.3 (1) For the calendar
year beginning January 1, 2004 and for every calendar year thereafter, a
person in whose name real property is assessed for a farm assessment or a farm
use assessment pursuant to the Real Property Assessment Act is eligible
to receive a tax credit, in an amount determined in accordance with the
regulations, in respect of the real property if

(a) the real property
comprises an area of land in excess of one hectare;

(b) the real property has been established and maintained,
in accordance with the
Environmental Protection Act R.S.P.E.I. 1988, Cap. E-9 during the
calendar year as a buffer zone or a forested riparian zone; and

(c) the person meets or
complies with any other criteria or requirements established by the
regulations.

Portion of
buffer zone not eligible for credit

(2) A person is not
eligible to receive a tax credit under subsection (1) in respect of any
portion of a buffer zone or forested riparian zone that is more than 10 metres
landward from a watercourse boundary or a wetland boundary. 2003,c.17.s.1; 2004.c.44.s.3.

Tax credit,
environmentally friendly farm buildings and structures

5.4 (1) For the calendar
year beginning January 1, 2004 and for every calendar year thereafter, a
person in whose name real property is assessed for a farm assessment for a
farm use assessment pursuant to the Real Property Assessment Act and
who meets or complies with any other criteria or requirements established by
the regulations is
eligible to receive a tax credit in respect of any environmentally friendly
farm building or structure located on the real property that is equal in
amount to the amount of the provincial real property taxes payable in respect
of the building or structure. 2003,c.17.s.1; 2004.c.44.s.4.

"environmentally
friendly farm building", defined

(2) In this section,
"environmentally friendly farm building or structure" means a farm building or
structure of a type or class prescribed by the regulations.
2003,c.17.s.1

Effect of appeal on tax

6.
A change in any tax levied
pursuant to section 4 arising out of a decision of any reference or appeal
under this Act, shall not affect any other tax levied, unless the tax levied
is itself changed as a result of a reference or appeal under this Act.
R.S.P.E.I. 1974, Cap. R-6, s.5.

TAX AS APPLIED TO FARM PROPERTY

Tax on farm property

7. (1) In the
event the monetary value of taxes on farm property calculated on the basis of the real
property assessment of the farm property is greater than the monetary value of taxes on
farm property calculated on the basis of the farm assessment, the taxes calculated on the
basis of the farm assessment shall be payable. R.S.P.E.I. 1974, Cap. R-6,
s.6; 1987, c.61, s.2; 2001,c.11,s.3 {eff.}
Jan. 1/00.

Tax on farm use property

(2) In the event the monetary value of the taxes on farm use
property calculated on the basis of real property assessment of the farm use
property is greater than the monetary value of taxes calculated on the basis
of the farm use assessment, the taxes calculated on the basis of the farm use
assessment shall be payable. 2001,c.11,s.3 {eff.} Jan. 1/00.

MUNICIPAL REAL PROPERTY TAX

Taxation by a municipality

8. (1) All
real property situated, lying and being within the boundaries of a municipality, and which
has been assessed pursuant to the Real Property Assessment Act, is liable to
taxation by the municipality, subject to subsections (5) and (7), and subject to the
exemptions from taxation set forth in section 3.

Municipal rates of tax

(2) On or
before March 31 in each year, every municipality shall, subject to subsection
(5), approve

(a) a single rate of tax to be
levied against commercial realty; and

(b) either

(a) a
single rate of tax to be levied against non-commercial realty; or

(b) two or
more rates of tax to be levied against two or more classes or types of
non-commercial realty,

and those approved rates of
tax shall be levied by the Minister against the commercial realty and
non-commercial realty, respectively, situated, lying and being within the
municipality.
2005,c.48,s.1.

Notice of tax rates set by municipality

(2.1)
Every municipality shall, on or before March 31 in each year notify the Minister
shall levy the rate or rates of tax applicable in respect of the previous
year.

Taxes
collected are property of the Crown

(3) The
taxes collected by the Minister at the rate or rates of taxes levied under
this section are the property of the Crown and shall be paid, on collection,
into the Operating Fund of the province.

Period in which rate applicable

(4) The
rate or rates of tax referred to in subsections (2) and (2.1) are applicable in the calendar year in
which it or they were levied by the municipality from and after January 1 and up to and
including December 31.

Regional school board supplementary educational
program, tax

(5) A
regional school board may levy a single rate of tax against all real property situated,
lying and being within the jurisdiction of the regional school board for a supplementary
educational program, and such tax shall be at a rate that may be approved by the regional
school board annually; and the tax shall be in addition to taxes otherwise payable
pursuant to this Act.

Calculation of tax

(6) The
tax shall be calculated by the municipality on the market value of the real property except
that

(a) in the case of a farm property, it shall be calculated
on the farm assessment value of the property;

(b)
in the case of a farm use property, it shall be calculated on the farm use
assessment value of the property; and 2001,c.11,s.4 {eff.} Jan. 1/00.

(c) in the case of an
owner-occupied residential property, it shall be calculated on the
owner-occupied residential property assessment value of the property.

Property within boundaries of more than one
municipality

(7) Where
the real property is situated, lying or within the boundaries of more than one
municipality, that municipality that provides municipal services in respect of the
property is entitled to levy and collect the tax.

Fire service tax

(8) The
provisions of this section apply to the levy and collection of the tax levied for fire
protection pursuant to section 45 of the Fire Prevention Act R.S.P.E.I. 1988, Cap.
F-11 as if the fire district were a municipality.

Waste management fees

(9) The provisions of this section apply to the levy and
collection of fees for services respecting waste management charged by the
Island Waste Management Corporation pursuant to section 18 of the
Environmental Protection Act
R.S.P.E.I. 1988, Cap. E-9.
2001,c.11,s.4 {eff.} Jan. 1/00.

Lien

(10) Fees
referred to in subsection (9) constitute a lien on the real property in respect of which
they are charged until payment is made and that lien has priority over every claim,
privilege or encumbrance of any person, except the Crown, against that property.

Reductions
to municipal rates of tax for non-commercial

(11)
For the calendar year 2008, any rate of tax that is required to be levied
under subsection (2) or (2.1) against non-commercial realty shall be
reduced,

(a) in the case of non-commercial realty located in
the City of Charlottetown, by $0.66 per $100.00 of assessment;

(b) in the case of
non-commercial realty located in the City of Summerside, by $0.96 per
$100.00 of assessment;

(c) in the case of
non-commercial realty located in the Town of Cornwall or the Town of
Stratford, by $0.20 per $100.00 of assessment; and

(d) in the case of
non-commercial realty located in a municipality, other than one referred to
in clause (a), (b) or (c), that provides its own police protection, by $0.10
per $100.00 of assessment,

9.
A change in any tax, levied pursuant to section 8 arising out of a decision of
any reference or appeal under this Act, shall not affect any other tax levied,
unless the tax levied is itself changed as a result of a reference or appeal
under this Act. R.S.P.E.I. 1974, Cap. R-6,
s.8.

Tax roll

10.(1) The
Minister shall maintain a tax roll on which shall be listed all real property in the
province.

Idem

(2)
The tax roll shall contain such information as may be prescribed by regulation.

Municipal tax roll

(3) The
Minister shall supply to each municipality at least once in each calendar year, on or
before March 31 in that year, a list of real property situated, lying and being within the
boundaries of the municipality, and such list shall contain such information as may be
prescribed by regulation.

Public inspection of tax roll

(4)
Such portion of the tax roll as may be prescribed by regulation shall be
open to public inspection during reasonable office hours at such places as
shall be designated by regulation.
R.S.P.E.I. 1974, Cap. R-6,
s.9.

Taxes levied and collected from person assessed

11.(1) The
Minister and the municipalities shall levy, and the Minister shall collect all taxes
payable on taxable real property in the name of the person in whose name the real property
is assessed pursuant to the Real Property Assessment Act.

(2)
Each person in whose name a tax is levied is liable for the payment of any
tax levied in his name pursuant to this Act, and such person shall pay to
the Minister the tax or taxes so levied against him.

Joint tenants, designation of one to represent

(3)
Notwithstanding subsection (2), where real property is held in joint tenancy or in tenancy
in common, the owners shall annually notify the Minister in writing of the person in whose
name the tax is to be levied, but where the owners fail to so notify the Minister, the
Minister may designate one of the owners as the person in whose name the tax is to be
levied.

Effect of designation

(4) The person named pursuant to
subsection (3) is liable for the payment of all taxes levied against the
joint tenants or tenants in common under this Act and shall be deemed to act
for and bind the other joint tenants or tenants in common, and service of
notices and other instruments under this Act upon him shall be deemed to be
service upon all the joint tenants or tenants in common. R.S.P.E.I. 1974, Cap.
R-6,s.10.

NOTICE OF TAXATION

Notice of taxation

12.(1) Subject to subsection (5), the Minister annually shall mail, prior to a
date to be fixed by regulation, to every person in whose name a tax is to be levied
pursuant to this Act, a notice which shall be in such form as shall be
approved by the Minister and which shall specify the tax payable, the date on which such tax is due and
payable and the place at which such tax is payable and the real property to which it
applies. 2003,c.17.s.2

Evidence of
delivery of notice

(2) The
Minister shall enter on a notice mailed under subsection (1) the date of the
mailing of the notice, and the entry of the date of the mailing on the
notice shall be deemed, in the absence of evidence to the contrary, evidence
of the delivery of the notice.

Direction in writing of mailing address

(3) When a
person in whose name a tax is levied pursuant to this Act provides the Minister with a
direction in writing, giving the address to which the notice of taxation is to be mailed
by the Minister, the notice of taxation shall be so mailed by the Minister, and the
direction stands until revoked in writing.

Address not ascertained, delivery

(4) Where
the Minister cannot ascertain the address of persons in whose names a tax is levied
pursuant to this Act,

(a) a notice

(i) that is in
such form as may be prescribed by regulation,

(ii) that identifies the real property against which the tax is
levied,

(iii) that specifies the assessment on commercial realty and on
non-commercial realty, and the farm assessment and farm use assessment applicable to the real property, and
2001,c.11,s.5 {eff.} Jan. 1/00.

(iv) that sets forth such other information as may be prescribed
by regulation,

shall be delivered by posting it on the real
property; and

(b) a list

(i) that is in
such form as may be prescribed by regulation,

(ii) that contains their names and identifies generally their
real property against which the tax is levied,

(iii) that contains such other information as may be prescribed
by regulation,

shall be

(iv) posted in or
near the registry office for the county in which the real property is situated, and

(v) published in a newspaper having general circulation in the
area where the real property is situated.

Improvements, special real property tax

(5) Where
in any year between January 1 and November 1, anyperson effects improvements to
real property in excess of a value to be determined by regulation, and has been assessed
pursuant to the RealProperty Assessment Act on such improvements, the
Minister

(a) shall levy a
tax at the rates prescribed by section 4 against such real property for a
special real property tax in the name of such person;

(b) shall
make an entry on the tax roll recording such special real property tax;

(c) shall
mail to such person a notice of special real property tax.

Special real property tax

(6) A
special real property tax notice shall be in the form and have the same effect as a notice
of taxation prescribed pursuant to subsection (1), but shall have inscribed thereon the
words, "Special Real Property Tax".

Special real property tax payable

(7) A special
real property tax is due and payable on a date which shall be prescribed in the special
real property tax notice.

Effect of special real property tax

(8) A special
real property tax has the same effect as a real property tax and any person in whose name
a special real property tax is levied is subject to the provisions contained in this Act
relating to real property tax.

Improvements to property subject to municipal
taxation

(9) Where
in any year between January 1, and November 1, any person effects improvements in excess
of a value to be determined by regulation, to real property to which a municipal real
property tax has been levied by a municipality, the municipality shall levy a tax against
the real property on such improvements, for a special municipal real property tax, in the
name of such person.

Special municipal real property tax

(10) The
Minister shall make an entry on the tax roll recording the special municipal real property
tax.

Notice of special municipal real property tax

(11) The
Minister shall mail to the person referred to in subsection (9) a notice of the special
municipal real property tax, and shall collect the tax.

Idem

(12) A
special municipal real property tax notice shall be in the same form and shall have the
same effect as a notice of taxation prescribed pursuant to subsection (1), but shall have
inscribed thereon "Special Municipal Real Property Tax."

Special municipal real property tax payable

(13) A
special municipal real property tax, is due and payable on a date which shall be
prescribed in the special municipal real property tax notice.

Effect of municipal real property tax

(14) A special
municipal real property tax has the same effect as a municipal real property tax and any
person in whose name a special municipal real property tax is levied is subject to the
provisions contained in this Act relating to municipal real property taxes.

Notice valid notwithstanding errors

(15) No notice
under this Act is irregular, incomplete, or otherwise invalid, and no exemption from
taxation is conferred or may be inferred by reason of any error, omission, or mis-description on such notice or by reason of the non-receipt of the notice by any
person.
R.S.P.E.I. 1974, Cap.R-6, s.11; 2001,c.11,s.5 {eff.} Jan. 1/00.

CORRECTION OF ERRORS OR OMISSIONS

Error or omission in tax roll

13.(1) If
at any time prior to a date which shall be prescribed by regulation, the Minister
discovers that there is an error or omission in any part of the tax roll, he shall correct
the error or omission and alter the tax roll accordingly, and upon so correcting and
altering any tax levied pursuant to this Act by reason of any such error or omission, the
Minister shall deliver or transmit to the person in whose name the tax has been levied an
amended notice of taxation, and shall make the appropriate amendment to the tax roll.

Municipality to receive a copy of amended notice

(2)
In the event the error or omission referred to in subsection (1) is an error
or omission in a municipal real property tax, the Minister shall deliver or
transmit to the municipality in which the tax was levied, a copy of the
amended notice of taxation referred to in subsection (1).
R.S.P.E.I. 1974, Cap.
R-6,s.12; 1987,c.61,s.4.

(c) "principal
residence" means real property liable to taxation under this Act which is occupied by
an applicant for a deferred tax certificate or the spouse of the applicant for more than
six months in the year preceding the date of application or such lesser period as the
Minister may, in any particular case, approve;

spouse

(d) "spouse" has
the same meaning as in section 2 of the Old Age Security Act.

Application

(2) A
person liable to pay taxes in respect of his principal residence may, if annual household
income is less than $21,000, apply to the Minister in the prescribed form for a
certificate.

Issue of certificate

(3) Upon
approval of the application the Minister shall issue a certificate.

Idem

(4)
The Minister shall not issue a certificate to any person in respect of more than one
principal residence.

Effect of certificate

(5) A
certificate is authority for the deferment of all existing taxes, including arrears, and
all future taxes payable in respect of the principal residence specified in the
certificate or such proportion of the taxes as may be so specified.

Farm and commercial property

(6) In
relation to property which is assessed as one unit in the tax assessment roll and is used
partly as a principal residence and partly for commercial, farming or other purposes, the
Minister may make a separate assessment of such portion of the property as may reasonably
be regarded as necessary to the use and enjoyment of the principal residence and the
certificate has effect only in respect of that portion.

Suspension of certificate

(7) Where
annual household income is equal to or exceeds $21,000, the Minister shall, by notice to
the holder, suspend the certificate referred to in subsection (3) and as of the date of
the notice all future taxes are payable when due but without prejudice to the continued
deferment of taxes already deferred under the certificate.

Annual statement

(8) The
Minister shall send to the holder of a certificate an annual statement of the total amount
of the taxes and interest to the date of the statement that have been deferred under the
authority of the certificate.

When deferred
tax becomes due

(9) Where
the holder of a certificate

(a) dies; or

(b) conveys the property in respect of which the certificate is
issued to a person other than his spouse,

the certificate shall cease to have
effect and all taxes deferred up to the date of that event, together with interest at such
rate as is prescribed by regulations, shall, subject to subsection (10), become due and
payable by the holder of the certificate or, as the case may be, his personal
representative.

Transfer of certificate to name of surviving
spouse

(10) Where
the holder of a certificate dies, his surviving spouse, whether or not annual household
income is equal to or exceeds $21,000, may apply to the Minister to continue the deferral
of taxes in respect of the property and the Minister shall, upon approval of the
application, transfer the certificate into the name of the surviving spouse.

Cancellation of certificate

(11) The
holder of a certificate may at any time pay the deferred taxes and accrued interest and
upon receiving payment the Minister shall issue a receipt for the payment and cancel the
certificate.

Interest and recovery of deferred taxes

(12)
Deferred taxes which are overdue and unpaid bear interest as determined in
accordance with section 15 and the regulations and may be recovered in the manner provided in
section 16 for the recovery of unpaid taxes, subject to the qualification
that where on the death of the holder of a certificate, his estate is not
sufficient to pay the total amount of the taxes and interest due, the
obligation to pay the remaining balance is discharged.
1978,c.18,s.1;
1991,c.33,s.; 1996,c.35,s.1; 2004.c.44.s.6.

OVERDUE TAXES

Taxes, when overdue

15.(1) All
taxes levied by the Minister or a municipality pursuant to this Act are overdue, if unpaid
either in whole or in part unpaid, on a date which shall be prescribed by regulation.

Interest on overdue taxes

(2)
Where taxes are not paid in full by the date prescribed pursuant to
subsection (1), interest at the prescribed rate and calculated in the
prescribed matter shall be charged on such taxes that are overdue and
unpaid, and the interest when accrued shall be added by the Minister to the
taxes overdue and unpaid and is payable by the person in whose name the
taxes were levied. 2004.c.44.s.7.

Tax collectable includes interest

(3)
Subject to subsection (3.1), the tax collectable by the Minister pursuant to this Act
includes all interest charged by the Minister against the taxes.

Interest, uncollectable taxes

(3.1)
Interest shall cease to accrue on taxes as of the date the person liable to pay the tax
files an assignment in bankruptcy under the Bankruptcy and Insolvency Act R.S.C.
1985, Chap. B-3.

Overdue taxes constitute first lien against
property

(4) Where
taxes are overdue and unpaid, the taxes and any interest added thereto pursuant to this
Act, constitute a lien on the real property, in respect of which the taxes are levied and
the lien has priority over every claim, lien, privilege or encumbrance of any person and
does not require registration or filing to preserve it.

Worthless cheque, penalty

(5)
Where a cheque issued by any person in payment of tax is returned as not
negotiable by a savings institution, the Minister may levy upon that person
such penalty as may be prescribed. R.S.P.E.I. 1974, Cap.
R-6,s.13; 1991,c.33,s.3; 1994,c.53,s.2; 1996,c.35,s.2.

Notice of sale for arrears in taxes

16.(1)
Where taxes levied pursuant to this Act are overdue and unpaid, the Minister shall mail,
within twenty-four months from the date on which the taxes became overdue and unpaid, to
the person in whose name the tax is levied or to the person substituted for him pursuant
to subsection 12(3), a notice in a form prescribed by regulation stating that the tax is
overdue and unpaid and that the real property is liable to be sold by the Minister in
accordance with this Act.

Notice stating property subject to sale

(2)
Where taxes are overdue and unpaid twelve months from the date of the notice
stating that the real property is liable to be sold, referred to in
subsection (1), the Minister shall within sixty days send by registered mail
on a form prescribed by regulation to the person referred to in subsection
(1), a notice stating that the real property shall be sold.

Notice where address unknown

(2.1)
Where the Minister is unable to ascertain the address of the person in whose name the tax
is levied, the Minister is not obliged to mail the notices referred to in subsections (1)
and (2).

Minister shall sell property

(3)
Subject to subsection (5), where taxes on real property are overdue and unpaid seven days
after mailing of the notice prescribed by subsection (2), the Minister shall sell the real
property in accordance with the regulations.

Notice, publication of before sale

(4) No
sale of real property is to be held under this Act unless notice thereof in the form
prescribed by regulation has been published

(a) at least
once in each of two consecutive weeks in a newspaper having general
circulation in the area where the real property is located; and

(b) in two consecutive issues of the Gazette.

Property may be recovered before sale

(5) Where
taxes mentioned in subsection (3), and all costs, including legal fees, of any sale
proceedings to the date of payment are paid to the Minister at any time prior to the sale
under subsection (3), the sale shall not be held.

Registrar of Deeds to receive notice

(6) The
Minister shall mail to the Registrar of Deeds, a copy of all notices prescribed by this
section and mailed by the Minister to persons having overdue and unpaid taxes.

Proceeds of sale of real property

(7) All
money received by the Minister as the proceeds of any sale of real property
for overdue and unpaid taxes under this Act shall be disbursed in the
following order of priority:

(a)
first, in payment of the expenses of advertising and sale;

(b) second, in payment of all tax arrears and all taxes
owing on the real property and being unpaid to the date of sale and accrued
interest thereon;

(c) third, in payment of the taxes, as defined in clause
1(g) of the
Revenue Administration Act
R.S.P.E.I. 1988, Cap. R-13.2, owing
to the province by the assessed owner of the property and being unpaid to
the date of sale;

(d) fourth, in payment of outstanding charges owing to a
municipality or a municipal corporation

(iii) pursuant to subsection 28(1) or 29(3) of the City of
Summerside Act
R.S.P.E.I. 1988, Cap. S-9.1,

where
the municipality or municipal corporation has certified the amount owing
prior to the sale of the property;

(e) fifth, to the person in whose name the tax was levied
for the collection of which the sale was held under this Act. 1976,c.26,s.1; 1990,c.51,s.3; 2002,c.39,s.1;
2003c.17.s.2.

Sale for
arrears in taxes, proceeds deposited to Operating Fund

16.1 (1) Where

(a) taxes levied against
real property are overdue and unpaid and the real property is sold by the
Minister pursuant to subsection 16(3); and

(b) the Minister, after
making disbursements of the proceeds of the sale in accordance with the
order of priorities set out in clauses 16(7)(a) to (d),

(i) holds any remaining
proceeds of the sale that are required by clause 16(7)(e) to be
disbursed to the person in whose name the taxes were levied, and

(ii) cannot ascertain
the address of the person in whose name the taxes were levied,

the Minister shall pay
the remaining proceeds of the property sale into the Operating Fund.

Refund,
application

(2) Where the remaining
proceeds of a property sale are paid into the Operating Fund pursuant to
subsection (1), the person who is entitled under clause 16(7)(e) to receive
those proceeds may apply, in writing, to the Minister for a refund of the
amount of the proceeds that were paid into the Operating Fund.

Refund

(3) On receipt of an
application under subsection (2) for the refund of the amount of the
proceeds of a property sale that were paid into the Operating Fund, the
Minister shall refund such an amount to the applicant if the Minister is
satisfied that the applicant is the person who is entitled under clause
16(7)(e) to receive those proceeds.

Interest

(4) Where the proceeds of
a property sale are refunded to any person under this section, interest is
not payable thereon by the Government. 2008,c.58,s.1

Minister to issue deed or certificate of
ownership

17.(1) Where the real property is sold pursuant to subsection 16(3), the Minister shall mail to
the purchaser, his assigns or legal representatives, a deed or certificate of ownership in
the prescribed form in respect of the real property.

Deed or certificate of valid sale

(2) A deed
or certificate under subsection (1) is conclusive evidence that all provisions of this Act
with respect to

(a) taxation on; and

(b) procedure for the
sale of,

the real property specified in
the deed or certificate have been complied with.

Title

(3)
A deed or certificate under subsection (1) vests in the grantee ownership of
the real property specified therein freed of all claims and encumbrances. R.S.P.E.I. 1974, Cap.
R-6,s.15; 1980,c.45,s.3.

Sale set aside for error, status of lien

18.
When real property is sold under this Act and the sale is set aside for
error, irregularity or other cause, the lien thereon is not discharged and
the real property may again be sold as provided in this Act. R.S.P.E.I. 1974, Cap. R-6,s.16.

Liability

18.1
Where a sale is set aside under section 18 or a court awards other relief in
connection with a tax sale under this Act, the liability of the Minister
shall not exceed the proceeds realized from the sale. 1991,c.33,s.4.

Minister may purchase property at sale

19.(1)
Where a sale is held under section 16, the Minister may purchase the real property at the
sale, if

(a) he bids no more than the
total of

(i) the expenses of advertising
and sale, and

(ii) all tax arrears on the real property with interest added
thereto; and

(b) no higher bid is made.

Procedure when Minister purchases

(2)
Where the Minister is the purchaser at the sale, the procedure to be
followed is the same as provided under this Act where any other person is
the purchaser.
R.S.P.E.I. 1974, Cap. R-6,s.17.

Damage or destruction of property, prepaid
taxes

20.(1)
Where real property is damaged or destroyed, the Minister shall adjust the amount of tax
due and payable for the unexpired portion of the year for which tax has been prepaid under
this Act, and shall rebate an amount proportionate to the amount of damage, to the person
in whose name the tax was levied, and such amount shall be equal to the unexpired portion
of the year for which the tax was paid, in accordance with the regulations.

Property vacated

(2)
When any occupier of commercial realty permanently vacates such property
before November 1 in a year in which taxes were levied and paid in full for
that year, the Minister, upon the written request of the person in whose
name the taxes were levied, shall rebate to such person an amount equal to
the difference between the tax calculated at the rate for commercial realty
and the tax calculated at the rate for real property other than commercial
realty for the portion of the year during which the occupier did not occupy
the commercial realty.
R.S.P.E.I. 1974, Cap. R-6,s.18.

Operating Fund

21.
All money collected by the Minister pursuant to this Act shall be deposited
by the Minister to the credit of the Operating Fund. R.S.P.E.I. 1974, Cap. R-6,s.19; 1997,c.20,s.3;
1997,c.20,s.3.

(a)
distribute to a municipality, in accordance with the schedule of
disbursements prescribed by the regulations, an amount equal to one hundred
percent of the municipal real property taxes, and the taxes referred to in
subsection 8(8), that the municipality is entitled to levy under this Act;
and.

(b)
distribute to Island Waste Management Corporation, in accordance with the
schedule of disbursements prescribed by the regulations, an amount equal to
one hundred percent of the fees for services referred to in subsection 8(9),

and such disbursements shall
be made irrespective of the amounts of such taxes and fees that are
collected by the Minister.

Deduction of
collection costs

(2) Before
making a disbursement under subsection (1) in respect of taxes or fees, the
Minister shall deduct such amount as the Minister may determine to offset
the costs of the collection of the taxes or fees, as the case may be. R.S.P.E.I. 1974, Cap. R-6,s.20;
2004.c.44.s.8.

SERVICE OF NOTICES AND DOCUMENTS

Service of notices and documents

23. A
notice, document or instrument required to be served under this Act or the regulations
other than notices of taxation provided for in sections 12 and 13 is sufficiently served
if

(a) delivered personally;

(b) sent by registered mail addressed to the person who is
entitled to receive the said notice, document, or instrument at the latest address
appearing on the records of the Minister, or at the address furnished pursuant to
subsection 12(3).

Date service deemed effected

(2) Where
any notice, document, or instrument mentioned in subsection (1) is served by registered
mail, the service shall be deemed to be made on the fifth clear day after the date of
mailing.

Other methods of service

(3)
Notwithstanding subsections (1) and (2), the Minister may order any other method of
service of any notice, document, or instrument.
R.S.P.E.l. 1974, Cap. R-6,s.21.

APPEALS BOARD

Sections 24 and 25 repealed by 1991,c.18,s.22 {eff.}
Nov. 4/91.

Burden of proof on appeal

26.(1)
Subject to subsection (2), in any appeal to the Commission the Minister shall demonstrate
the uniformity of the tax in relation to other taxes.

Further evidence on appeal

(2) In any
appeal to the Commission where the notice of appeal contains allegations of fact,
statutory provisions and reasons relied on by the appellant which were not raised or dealt
with in the reference to the Minister, the Minister may adduce further evidence which need
notbe confined to supporting the reasons for his decision entered in the register.
R.S.P.E.I. 1974, Cap. R-6,s.24; 1991,c.18,s.22 {eff.} Nov. 4/91.

Appearance before Commission

27.(1) Any
party to an appeal to the Commission may appear in person or may be represented at the
hearing by an agent or counsel.

Written submissions

(2) The
Commission may order that written submissions by one or more of the parties be filed in
addition to the hearing.

Filing written submissions

(3) If all
parties consent, the Commission may order that written submissions be filed in the place
of an oral hearing.

Non-appearance of appellant

(4)
Subject to subsection (6), where on an appeal to the Commission the party appealing does
not appear at the time and place appointed for the hearing, the Commission may dismiss the
appeal.

Withdrawal of appeal

(5) An
appeal may be withdrawn upon filing with the Commission a notice of withdrawal signed by
the appellant, his agent, or counsel.

Setting aside dismissal of appeal

(6) Where
an appeal has been dismissed under subsection (4) the Commission may on application made
by the party appealing within seven days from the date of dismissal, if it is satisfied
that the appellant has sufficient reason for his absence, set aside the dismissal and fix
a new date for hearing such appeal. R.S.P.E.I. 1974, Cap. R-6,s.25; 1991,c.18,s.22 {eff.}
Nov. 4/91.

Disposing of appeals, how

28. The
Commission may hear and dispose of an appeal by

(a) dismissing it;

(b) allowing it and directing the Minister to vacate the tax or
to make a specific change in the tax; or

(c) referring the tax back to the Minister for re-calculating the
tax in accordance with the directions of the Commission. R.S.P.E.I. 1974, Cap. R-6,s.26;
1991,c.18,s.22 {eff.} Nov. 4/91.

Copy of decision to be mailed to parties

29. Repealed
by 1991,c.18,s.22 {eff.} Nov. 4/91.

Effective date of decision

30. A
decision of the Commission has effect from January 1 in the year for which the tax
appealed from was made, and any changes decision required to be made by the Minister as a
consequence of the decision shall be made by the Minister within thirty days after the
Commission has made its decision.
R.S.P.E.I. 1974, Cap. R-6,s.28; 1991,c.18,s.22 {eff.}
Nov. 4/91.

APPEALS

Effect of appeal under RealProperty
Assessment Act

31.(1)
Where an appeal is made pursuant to the Real Property Assessment Act against an
assessment made pursuant to the Real Property Assessment Act, the taxes levied by
the Minister under this Act remain due and payable as if no appeal had been made, until
the Commission otherwise orders, except as provided in subsection (2).

Rebate on amount of reduction

(2) Where
as a result of an appeal referred to in subsection (1), a reduction in assessment is
ordered by the Commission, a rebate in an amount of reduction amount to be calculated on
the basis of the reduction in assessment, together with interest thereon, at a rate which
shall be prescribed by regulation, on the amount of rebate, is to be made to the person in
whose name the tax was levied. R.S.P.E.I. 1974,Cap. R-6,s.29; 1991,c.18,s.22
{eff.} Nov.4/91.

Taxes remain due and payable

32.(1)
Where an appeal is made pursuant to this Act against a tax levied by the Minister pursuant
to this Act, the taxes levied by the during appeal Minister under this Act remain due and
payable as if no appeal had been made, until the Commission otherwise orders.

Person to receive rebate

(2) Where
as a result of an appeal referred to in subsection (1), a reduction in tax is ordered by
the Commission, a rebate in an amount to be calculated on the basis of the reduction in
tax together with interest thereon, at a rate which shall be prescribed by regulation, the
amount of rebate is to be made to the person in whose name such tax was levied.

No appeal against assessment hereunder

(3) No
appeal lies under this Act against any assessment made pursuant to the RealProperty
Assessment Act or against any rate or rates of tax established or levied by the
Minister or a municipality pursuant to this Act. R.S.P.E.I. 1974, Cap. R-6,s.30;
1991,c.18,s.22 {eff.} Nov. 4/91.

Reference to Minister

33.(1) Any
person who receives a notice of taxation pursuant to section 12 or an amended
notice of taxation under section 13, may refer in writing any tax to the Minister within
within ninety days after the mailing of the notice of taxation or the
amended notice of taxation, as the case may be. 2003,c.17.s.4.

Contents of reference

(2) Any
person who refers a tax to the Minister under subsection (1), shall set out in the
reference his address and reasons for objecting to such taxation.

Disposal of reference

(3) The
Minister shall reconsider a tax referred to him under subsection (1), and shall vacate,
confirm or vary such tax, and where the reference is under subsection (1), the Minister
shall send a notice to the person of his decision and his reasons therefor, within
forty-five days of receipt of the reference together with four copies of a form prescribed
by regulations for giving notice of appeal to the Commission.

Effective date of reference decision

(4) The
decision of the Minister, has effect on January 1 of the year for which the tax appealed
from was made, and any changes required to be made in the taxation roll as a result
thereof, shall be made within thirty days after the Minister has made his decision.

Delivery of notice

(5) Any
reference or notice under this section may be delivered or mailed pursuant to section 23. R.S.P.E.I. 1974, Cap. R-6,s.31;1991,c.18,s.22 {eff.}
Nov. 4/91; 2003,c.17,s.4.

Referral register

34.(1) The
Minister shall maintain a referral register.

Contents

(2) The
Minister shall enter in the referral register

(a) a full description of a
reference made under subsection 33(1);

(b) the Minister's decision in respect to the reference; and

(c) the reasons for his decision in respect to the reference.

Entries to be signed

(3)
Each entry in the referral register shall be signed for the Minister by any
person designated by him to act on his behalf. R.S.P.E.I. 1974, Cap.
R-6,s.32.

Appeal from decision of Minister

35.(1)
Where a tax has been referred to the Minister under section 33 , and after the Minister
has notified the person making the reference of his decision the person making the
reference may appeal to the Commission, to have the tax vacated or varied.

Entitlement to appeal

(2) An
appeal under subsection (1) may be made by the person in whose name a tax has beenlevied

(a) within twenty-one days of the
mailing of the notice referred to in subsection 33(3); or

(b) where
the Minister has not notified the person of his decision within the time
specified by subsection 33(3), within twenty-one days after the time for
mailing the notice has expired. R.S.P.E.I. 1974, Cap.
R-6,s.33; 1991,c.18,s.22 Nov.4/91.

Instituting appeal, procedure

36.(1) An
appeal to the Commission shall be instituted by serving a notice of appeal in a form
prescribed by the regulations

(a) upon the Minister by mailing
a copy thereof by registered mail;

(b) upon the chairman of the Commission by mailing a copy thereof
by registered mail; and

(c) upon such other person as the Minister by notice in writing
to the appellant may direct.

Entitlement to appear

(2)
Any person served with a notice of appeal may appear thereto. R.S.P.E.I. 1974, Cap.
R-6,s.34; 1991,c.18,s.22 Nov. 4/91.

Notice of appeal

37.
The notice of appeal shall contain a statement of the allegations of fact,
the statutory provisions upon which the appellant relies and the reasons
which the appellant intends to submit in support of his appeal. R.S.P.E.I. 1974, Cap. R-6,s.35.

Appeal to Supreme Court

38.
Notwithstanding anything in any public or private Act, an appeal lies to the
Supreme Court of the province from any order, decision or award of the
Commission, if notice of such appeal is given the other parties within
forty-five days after the making of the order, or decisions sought to be
appealed from. R.S.P.E.I. 1974, Cap.
R-6,s.36; 1991,c.18,s.22 Nov. 4/91.

Applicable rules of court

39.
The rules and practices of the Supreme Court respecting appeals apply with
the necessary changes to any appeal.
R.S.P.E.I. 1974, Cap. R-6,s.37; 1975,c.27,s.3.

40.1 Upon
payment of such fee as the Lieutenant Governor in Council may determine, the Minister may
issue a tax clearance certificate. 1992,c.57.s.1.

Prohibition against levying and collecting
taxes

41. Notwithstanding the provisions of any public or private Act, no person or municipality
residing or being, in the province may levy or collect, except as provided by this Act,
any real or personal property tax or poll tax in the province. R.S.P.E.l. 1974, Cap.
R-6,s.39.

Notice or entry certified by Minister,
effect of

42. A copy
of any notice under this Act or of any entry on the tax roll duly certified by the
Minister or any person designated by him to have been compared by him with the original
and to be a true copy thereof, is without proof of its official character, handwriting or
designation by the Minister evidence in all courts of the notice or entry. R.S.P.E.I.
1974, Cap. R-6,s.40.

Regulations

43.(1) The
Lieutenant Governor in Council may make regulations

(a) respecting the powers and
duties to be exercised and performed by a person designated by the Minister to act on his
behalf,

(b) respecting the practice and procedure which may be followed
by the Lieutenant Governor in Council in geographically defining an area as a
municipality, and the designation of such geographically defined area as a municipality;

(c) repealed by 1991,c.18,s.22;

(d) respecting the procedures and forms to be used by the
Minister in the collection of taxes;

(e) prescribing forms for the better carrying out of the intent
and purpose of this Act;

(f) respecting prepayment and installment payment of taxes;

(g) prescribing the fees and costs to be allowed under this Act;

(h) respecting adjustments and rebates;

(i) respecting tax credits and the criteria for eligibility therefor;

(j) generally respecting the process of taxation in the province;

(j.1) prescribing the rate at
which, and the manner for calculating, the interest that is payable in
respect of overdue taxes; and

(k) generally
to carry out the intent and purpose of this Act.

Publication in Gazette

(2) No regulation made under this
Act has effect until it has been published in the Gazette.

Retroactive
effect

(2.1) A regulation made under this Act
in respect of a tax credit referred to in section 5.1 may, after it is
published in the Gazette and if the regulation so provides, be retroactive
to a period before it was published.

Retroactive
effect

(3) A regulation made under this Act in respect of the tax
credit referred to in section 5.2 to 5.4 may, after it is published in the
Gazette and if the regulation so provides, be retroactive to a period before
it was published.

Idem

(4) A regulation
made under this Act in respect of the rate at which, and the manner for
calculating, the interest that is payable in respect of overdue taxes may,
after it is published in the Gazette and if the regulation so provides, be
retroactive to a period before it was published. 2004.c.44.s.9.

44.
Every person who violates this Act, or regulations made under this Act, is
guilty of an offence and on summary conviction is liable to a fine of not
more than $500. R.S.P.E.I. 1974, Cap.
R-6,s.43; 1994,c.58,s.6.